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Display Advertising definition (Display Ads)


Display Advertising (© strichfiguren.de / Fotolia.com)

Display Advertising (© strichfiguren.de / Fotolia.com)

Display advertising, also known as banner advertising, is a type of online paid advertising. It is comprised of a photo or an image that has been specifically designed for the advertisement, and it is accompanied by persuasive copy. Those who see the ads can click on the image, and when they do, they are direct to a corresponding landing page. In this article, we’ll fully discuss display ads, including their benefits and how they can be used.

Display advertising, or banner advertising, is a type of marketing that uses a visual element to send out a message. Visual elements included in a display ad can include logos of a company, photographs or videos of products being used, animations, gifs, and other types of graphic content. Written text accompanies the visual content of these ads, providing viewers with more information and encouraging them to take a specific action.

What is a Display Ad?

A display ad, also known as a banner ad or a web banner, is an advertisement that is displayed on a web page. As mentioned, the advertisement contains an image or multimedia content that aims to catch the attention of the intended audience, causing them to take interest in the products, services or the company that the ad is promoting. The ad also contains written content that provides more information, ups the engagement factor of the ad, and encourages users to take a specific action (call to action).

Display ads can be either static or animated. A static banner ad can consist of a simple image. It serves as an advertisement, but in the digital environment that it is used in, the image can be clicked on, directing those who do click on it to a website or a landing page that is associated with the advertisement.

An animated banner ad serves the same purpose as a static ad; however, instead of being still, the ad has action. Once a user clicks on the animate banner ad, he or she is directed to the website or landing page that is associated with the advertisement.

Statistic: Revenues from digital display advertising in Germany from 2013 to 2016, with a forecast for 2017 (in million euros) | Statista
Find more statistics at Statista

How do Display Ads Work?

The goal of a display or banner ad is to generate traffic to a website by linking a website to the advertisement. These ads can also serve the same function as traditional advertisements in that they can be used to inform and notify the public about products and services, as well as increase brand awareness.

The Benefits of Display Advertising

There are several benefits that banner advertising can offer businesses. Some of the most notable benefits of this type of advertising include:

  • It builds brand awareness. Brand awareness is crucial for the success of a business. The more people recognize a brand, the more likely they are to trust it and purchase products or services that are associated with it. Display ads are an excellent way to build brand awareness, as they help to put the logo and the message of the company out in front of a large audience. Several well-known brands use banner advertising to build awareness and promote their business, including Apple, IBM, Target, Nike, Macys, and Verizon.
  • It generates leads. Banner advertising can be an effective way to build your user base and generate leads. It can help to encourage more people to sign up and try out a company’s products or services, for example.
  • Retargets an audience. If someone visits a website but didn’t purchase a product, sign up for a newsletter or failed to complete some other action, a display ad can be used to reach out to that visitor, remind them of your business, and encourage them to visit your website again and complete an action.

Where are Display Ads Placed?

Typically, display advertisements are placed on websites that have a high volume of traffic, and that offer useful and engaging content; particularly content that is relevant to the business that the display ad is intended for.

Besides traffic, there are other important factors that should be considered when selecting a website to display a banner ad on. For example, the website should target people that are more likely to be interested in the products or services your business offers, and will therefore be more likely to engage with your ad, and complete a specific action; make a purchase or join a mailing list, for example.

Why Banner Advertising is Effective

One of the main reasons why banner advertising is effective is because they can be measured. In other words, advertisers can see whether or not an audience is engaging with the advertisement. The performance indicator that is used for display ads is referred to as the click-through rate. A click-through rate is calculated by dividing the number of people who clicked on the ad by the number of times the ad was displayed (impressions).


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